Do You Consider Trading In A Bear Market?
The market condition is not the same always. Sometimes it becomes easy to make money in trading. You may find it difficult to make a profit sometimes. A bear market is a tough time to do trading and make a profit.
You see the price goes up and you take an entry. It does not take long to change the direction of the market. Often the price goes down after rising the price in a short period of time. Eventually, you end up selling at a low price and make a loss.
In a bear market, the overall market trend is on a downtrend. You can see it in the crypto market as well as in the stock market. During this time, you can do short selling. You sell the stock or crypto first and buy it later at a low price to make a profit.
If the price goes up after taking a short selling entry, you will lose. So when you see the price might go down after a certain point, you take the short sell entry. Putting a stop loss is a must, otherwise, you end up losing your trading capital. You make the plan before taking an entry and set a stop loss order and take a profit order according to your plan.
It is very risky to do futures trading and short selling. So it is not recommended for everyone to do futures trading. You can do what you are good at. It is not that you have to trade all the time.
Sometimes the best thing you can do is to stop trading. You cannot see any opportunity to trade, so you just wait. You are saving your capital so that when the market changes, you are ready to do trading.
Every market is open for you as a trader. You can see the same chart in the crypto market, stock market, and commodity market. What you see in the crypto market or stock market, you might see a different picture in a commodity market.
If the price of commodities rises and the commodity market is on the uptrend, you can take advantage of it and do trading. You are active and where you get the opportunity, you make your move.
In this post, I'm sharing my opinion. This is not financial advice. Do your research and due diligence before making any financial decision.
So what do you think? Please feel free to leave your comments. Thank you for reading this post. That's it for now. I'll be back with another post.
In bear market sellers are losers and buyers are winners or reverse for green market so some people make a huge profit in the bear market.